Companies are slowly beginning to realise the existential nature of the challenge that digital hypercompetition poses to them.
When they see the destruction wrought by disruptors on incumbents in music (Spotify), media (Google) or retail (Amazon), it’s difficult to deny that the writing on the wall is for them.
Executives are beginning to take notice: a Sloan Management Review survey found that 90% of executives anticipate their industry will be digitally disrupted to either a great or moderate extent.
But taking action is much harder. In the same study, only 44% of executives thought their company was adequately prepared for hypercompetition. Boards are bombarded with offers of advice from large vendors and consultants, but settling for panaceas like innovation studios or lipstick solutions won’t be enough to secure a company’s digital future.
Transformation needs to go deep into the business, if it’s going to be effective.